Employee Underpayments And Overpayments

In the continual process of preparing staff paychecks, employees may occasionally be underpaid or overpaid. The following guidelines should be followed in remedying such situations.

Guidelines for Correcting Underpayments:

  • The employee will contact his/her supervisor or manager to report the occurrence of an underpayment.
  • The Human Resources Department Coordinator will contact the Payroll Specialist if a cutoff was missed for hour submission.
  • The Human Resources Department Coordinator will contact Records and Data Services if the cutoff was missed for PAF changes.
  • Either the Payroll Office or Records and Data Services will instruct the Human Resources Department Coordinator of additional steps necessary to correct the underpayments.

Guidelines for Correcting Overpayments:

When active or former employees receive overpayments from Brown University, it is the obligation of the employee to repay the amount overpaid by Brown. In cases of overpayment the University will make every effort to recover any such overpayments. Once it is determined that an employee or former employee has been overpaid, the Payroll Manager will manage all collection activities and decisions.

Steps for Reporting/Collecting an Overpayment:

  • The department will contact the Human Resources area involved in the overpayment (i.e. Records and Data Services Manager or Benefits Manager). Note: All faculty overpayments must be reported to Faculty Personnel who will contact the Human Resources area involved.
  • The Human Resources area will confirm the overpayment and calculate the exact overpayment amount.
  • The Human Resources area will notify the department and the Payroll Manager of the exact overpayment amount, include a brief explanation of the reason for the overpayment and employee contact information.
  • The Payroll Manager will manage the collection of the overpayment, including but not limited to the calculation of net amount due, contacting the employee, making arrangements with the employee, instructing the department if payroll adjustment forms are needed, preparing corrected W2 forms, and maintaining a spreadsheet of calendar year overpayments and resolutions.
  • If the Payroll Manager is unable to contact a previous employee or secure repayment, an outside collection agency may be involved. This is a decision involving the Payroll Manager, Records and Data Services Manager, Benefits Manager and Human Resources Department Coordinator. Final approval for outside collection agency action will be from the Assistant Vice President for Human Resources.